Sellers need to help with the short sale transaction

As a Certified Distressed Property Expert I can assist homeowners who need to sell their home even when they owe more that the home is worth. This is called a short sale and my office is a leader in successfully closing short sales throughout Central Florida.

Seller’s responsibility

If we are to have any success closing a short sale we do need the help of the home owner. That is where some of our biggest concerns rise and why we are not always able to complete the transaction. We appreciate those home owners who cooperate with us from start to finish. Unfortunately not all sellers are willing to do so.

Seller cooperation

Sellers of homes subject to a short sale are facing a situation that has probably been brought on because of a distressed situation, loss of employment, increase in mortgage payment they are unable to maintain, divorce, etc. Our goal is to help them eliminate this stress without having to have the home foreclosed on.

Seller cooperation is needed in many ways including:

• Sellers should provide us with accurate contact information, email, phone, cell phone and new address if applicable and then respond in a timely manner to our calls or emails.
• Sellers need to keep the property in good condition during the course of the listing contract.
• Sellers should keep utilities on or be willing to provide utilities for inspections, appraisals and walk-thru.
• Sellers need to provide all the necessary documents the lender is going to require in order to consider granting approval of the short sale.

As an agent it is frustrating to accept a listing subject to a short sale, market the listing, find a buyer and then have the seller drop off the fact of the earth or become unresponsive to requests need to close the transaction.

We are trying to help; we need your help too.

Related Florida real estate blog posts on short sales

How do you compete with the other 6,000 plus home owners selling their home as a short sale?

A distressed situation has forced you to list your home contingent upon the bank agreeing to accept less than you owe. This type of listing transaction is referred to as a short sale. Short sales are a common occurrence throughout Central Florida including; Osceola, Seminole, Orange, and Volusia counties.

Your situation is not unique. Short sale listings make up a large portion of the active real estate inventory. So how do you compete with over 6,000 plus home owners selling their home as a short sale? That's right, right now in the 4 counties mentioned there are over 6,000 homes listed for sale subject to the lender accepting a short payoff.

How do you make sure your home attracts buyers and receives an offer? You accomplish this the same way it has always been accomplished. The process to market and secure a buyer for your home remains unchanged even though it is a short sale.

• Proper Pricing. A home priced correctly will always attract the attention of buyers qualified in that price range. One of the first steps should be to research sales in the area in order to determine a price that is not to high or to low. Listing the home at real market value will result in offers.
• Market the home correctly. What makes your home standout from the competition besides the price and the fact that it is being sold as a short sale? Don't let yourself be short changed by the marketing efforts of the agent you hire. MLS comments are require to notify all that the home is subject to a short sale but even with the proper disclosure verbiage, there is plenty of room to describe features and amenities that buyers will find desirable. You should expect to receive full marketing efforts from the company you hire.
• Choose and experienced agent. It is important to make sure the agent you hire has short sale experience. When I say experience I am talking about not just in listing short sales but in getting them to the closing table. Ask if the agent has any formal training. Do they have the CDPE designation? Certified Distressed Property designated agents understand the process from beginning to end and are more than capable of helping you out of your situation by selling your home.

I understand you are under a tremendous amount of stress right now. You can reduce some of your stress by listing, receiving offers, negotiating with your lender and closing the sale with an agent who knows how to compete and win against the competition.

Homes being sold subject to a short sale contingency require lender approval

Homes being sold subject to a short sale contingency require the seller's lender approval. The FAR Short Sale Addendum to Purchase and Sale Contract, which should be a part of every short sale transaction states that the contract contingency includes the lender approving the purchase price and contract terms.

Contact me if you need assistance buying or selling a home subject to a short sale contingency.


Related Florida real estate views:

I have accepted an offer on my home subject to the bank approving a short sale. Does my agent have to list my home as pending?

Why overpricing your home will not work

Short sale needs bank approval

Florida short sale course

You could spend the money and attend a Florida short sale course or you could just list your home or join our real estate firm. We are closing short sale transactions on a regular basis and have a good understanding of what it takes to continue successfully close short sales in Florida.

Give me a call or email me to learn more about closing Florida short sales.


Related Florida real estate views:

Register for free foreclosure seminar in Kissimmee

Florida mls rules for short sale listings

Short sale needs bank approval


- Greg Staker 407-304-0255

Florida mls rules for short sale listings

Search for homes

The MLS has clearly stated that when a buyer and seller sign a contract to sell a home that has a short sale contingency, the home must be entered as pending in the MLS. Any additional offers on the home must be accepted as back up offers.

The change in the MLS from active to pending must happen in 2 business days.

This rule alerts buyers and agents prior to viewing and writing a contract that the home is already under contract.


Related Florida real estate views:

Real estate closings are in the hands of the banks

Short sale needs bank approval

Appraisals + short sales = no sale

- Greg Staker - 407-304-0255

MLS taking a stand regarding short sales and commissions

Agents who list homes subject to short sales have been provided with specific instruction from Mid Florida MLS regarding entering these types of listings into the MLS especially as it relates to commission.

Currently agents have been across the board on how they handle the issue of banks attempting to and in some cases successful in reducing the amount of commission the agents will collect.

As the offer of commissions is unconditional it is now against MLS rules to address the commission issue as some have in the past. In a recent email the MLS stated;

"It is not appropriate to provide notes such as “50/50” or “half of what the lender will pay” in any fields available in MLXchange."

The bottom line is that if you offer a certain amount of commission to a cooperating broker, you better be prepared to pay it unless the broker would agree in writing to accepting less, regardless of what the bank says on the matter.

The MLS further goes on to state;

"An offer of compensation to cooperating Brokers which states that it may be adjusted after execution of a contract for sale and purchase by a third party without the consent of the cooperating Broker is not an unconditional offer of compensation, and is, thereby, in violation of the MFRMLS Rules and Regulations"

Stay tuned in as I am confident we have not heard the last of this matter.


Related Florida real estate views:

Appraisals + short sales = no sale

Real estate agents would be wise to pick short sales over long sales.

Battle of the short sale: Just say no


- Greg Staker - Watson Realty Corp. - 407-304-0255